Oman: Listed insurers face impact of expected credit losses in adopting IFRS17
Source: Middle East Insurance Review | Aug 2024
With a rise in credit risk, the Omani insurance industry faces increasing challenges due to the enhanced impact of expected credit losses (ECL), says Badri Management Consultancy.
Badri said that IFRS17 has led to transformation moving conventional companies from reporting GWP to solely highlighting Insurance Revenue. This new metric includes Gross Earned Premium along with ECL.
Notably, for conventional insurance companies in Oman, there was a 7% increase in Insurance Revenue, reaching OMR136m ($354m) in 1Q2024, compared to OMR127m in the corresponding quarter last year.
For takaful companies, gross contribution remains their top-line measure. The gross contribution rose 13% from OMR18m in 1Q2023 to OMR21m in 1Q2024. M